Coinbase, the second-largest crypto exchange in the world, has made ongoing strides in its global expansion. Earlier this month, it was awarded a digital asset business license from the Bermuda Monetary Authority. This paves the way for the crypto behemoth to launch its offshore derivatives exchange, marking the company’s latest growth initiative. This is in addition to its Abu Dhabi, Canada, Brazil and Singapore operations. Coinbase’s overseas expansion follows recent regulatory actions by the US Securities and Exchange Commission (SEC) towards Coinbase and several other crypto exchanges, such as Bittrex.
Coinbase CEO Brian Armstrong has been outspoken about the need for digital asset regulations, but has pushed back on US regulations, which he believes to be unclear. In a Twitter Spaces event in March, he said regulation should involve specifying the rules rather than taking an enforcement approach.
Jesse Pollak is the head of protocols and lead for Base, a Coinbase layer 2 blockchain launched earlier this year. He is also responsible for Coinbase’s retail engineering, including Coinbase, Coinbase Pro and Coinbase Wallet. Previously, he helped found Clef, a two-factor authentication mobile app, and served as an engineer for BuzzFeed. Numerous crypto companies have since expressed interest in utilizing Base.
Although the US government’s regulatory approach has been stringent, it is still a leader in venture and tech. However, the extent of its blockchain’s development, innovation and growth could be dependent upon the level of regulation that is imposed. Digital identities are a necessary and important part of the web 3.0 world to combat the growing AI advancements. On the other hand, founders looking to get funding for their NFT projects must utilize traditional business tactics. One potential solution to an inefficient banking system could be decentralized finance on the blockchain.
Overall, the Coinbase expansion opportunity signals a chance for the global venture market to achieve massive growth. At the same time, it’s important for the US to foster blockchain advancement by creating and bringing to life more clear-cut legislation, as Jesse Pollak and a variety of crypto companies have deemed it essential.
